Hyundai Motor India shares fell 7% on their trading debut Tuesday after a record $3.3 billion initial public offering.

Hyundai has cemented its commitment to the Indian market by debuting the largest IPO ever valued at Rs 27,870 crore

The stock fell 34% when trading commenced but recovered to close at 1,819.6 rupees, down 7.16% from its IPO price, on the first day of trading in Mumbai. The company’s IPO was priced at 1,960 rupees a share, at the top end of its marketed range. Shares of parent company Hyundai Motor edged down about 1% in South Korea.

Shares of Hyundai Motor India dropped as much as 6% in their market debut on Tuesday, after a tepid response from retail investors to the pricing of the country’s largest ever initial public offering.

BENGALURU/MUMBAI (Reuters) -Hyundai Motor India shares fell 7.2% on their market debut on Tuesday after retail investors gave a lukewarm reception to the country's biggest ever initial public offering (IPO) amid concerns about a lofty valuation and an auto industry slowdown.

Hyundai Motor India’s IPO raised $3.3 billion in the listing A key challenge for Hyundai in India would be to defend its position as the country’s No. 2 carmaker from rivals Tata Motors and Mahindra & Mahindra.

GURUGRAM, India - Abhishek Gupta, one of the top car salesmen in India, expects Hyundai Motor’s latest stock listing here will enhance its corporate identity as a more localized carmaker and present a more approachable image to customers.

On Tuesday, Hyundai Motor India listed at ₹1,934 on the National Stock Exchange, a discount to its IPO price of ₹1,960, but Citi's Rahul Saraf said many clients are encouraged by the listing.